Average California home to reach over $520,000

According to the California Association of Realtors, the median price of California homes is expected to reach $523,000 for 2004, up more than 16% compared to last year. "While lower than anticipated mortgage interest rates are helping offset the impact of rising home prices, they also are a significant factor in driving the real estate market to new heights," she said. "Home buyers concerned that today's favorable interest rate environment may not last are eager to purchase a home, while the inventory of homes for sale remains low." (Full Story)